Parents of young children need to ensure they are making all the plans they can to ensure their child has a stable future. One thing that many people look past is having an estate plan that outlines what will happen to their children if both parents pass away. While this isn’t necessarily a pleasant topic to think about, it is one that should be addressed as quickly as possible.
You still need to have all the normal estate planning documents, including the will, trusts and end-of-life directives, but you’ll also need to set the plan for the children. The will can outline the transfer of assets that aren’t covered by payable-on-death instructions or trusts. The trusts can provide a private transfer of assets. Your advanced directives document provides medical care instructions. Powers of attorney for health care and for finances give someone power to make decisions in the respective area on your behalf.
For the children, you need to name a guardian. This is the person who will raise the kids when you aren’t able to. Ideally, you’ll chose someone who will be able to make decisions that are in line with what you’d make if you were still around. You should discuss the arrangement with the person, so they know what to expect and can let you know if they’re up for the task. It is possible to name secondary and even tertiary guardians in case the primary option isn’t suitable at the time.
Each decision you make for your estate can impact the children. While they are still minors, you might tailor the estate plan to provide support for them.